Spotify completely changed the way people consume music and support their favorite artists. With Spotify making streaming the number one way people listen to music, artists no longer get that much money from album sales. In an attempt to make up for that, Spotify pays artists royalties for putting their music on Spotify.
And generally, these royalties are higher the more streams you have. This might lead you to ask – how much does Spotify pay per stream?
Today, we’re looking at estimates of how much Spotify pays artists, how artists get paid on the platform, and whether or not this is enough for the modern-day artist.
Read on to learn more.
How Much Does Spotify Pay Per Stream?
Finding the exact rate that Spotify pays artists can be tough. This is because Spotify has never released official figures and artists who do actually make money don’t really speak about their royalties either. That said, it’s generally accepted that the going rate per stream in the US is between $0.003-$0.005 per stream.
So, when uploading music to Spotify you can expect to earn around that much per stream. However, take this information with a grain of salt as the rates that Spotify pays out can vary depending on a number of factors. On top of that, since Spotify hasn’t released the official rates they pay their artists, determining how much you can earn per stream can be hard.
However, the general consensus is that Spotify doesn’t pay artists that much for their music. This means that if you want to earn a significant amount through Spotify royalties, you have to get a lot of streams.
On top of that, if artists release their music under a label, the label will likely have a significant cut from the generated royalties on Spotify. Spotify also gets a cut from royalties, so the average split in the industry is around 30% for Spotify and 70% for the artist and label.
How Much Does Spotify Pay for 1,000 Streams?
Based on our estimates earlier, 1,000 streams will earn you around $4.37-$5.00. This isn’t a lot, which is why many artists look for other ways to earn money from their music. However, they still upload to Spotify as it is arguably the best platform to upload music to and offers the highest chance of people discovering you.
Again, keep in mind that everything above is an estimate. Without official data from Spotify, we won’t be able to accurately calculate how much you may earn when you reach 1,000 streams on Spotify.
How Do Artists Get Paid on Spotify?
Spotify royalties work in an interesting way. Instead of paying artists directly, the platform pays out the royalties to the rights holders who will then distribute it among the artists. The amount of money the artists receive from the rightsholders can vary on a per-agreement basis. There are some artists that only receive 10% of their royalties, while others can negotiate much higher percentages for their royalties.
If you distribute your music independently, then you get to hold all the royalties that Spotify pays out. This is why there are many artists nowadays deciding to go the independent route when releasing and recording their music.
Read more: How Much Do Artists Make On Spotify?
Does Spotify Pay the Same Per Stream for All Artists?
No, Spotify doesn’t pay artists the same amount of money per stream. The pay per stream an artist will get will depend on several factors, including the number of streams they get, where their listeners are from, and the genre of music.
For example, if you have 5,000 listeners from the United States, you will make times more money compared to if you had 5,000 listeners from South East Asia.
So, when trying to calculate and estimate how much money you may receive from Spotify, make sure to consider all the factors that can impact your pay per stream.
That said, it’s very difficult to estimate how much you can get from Spotify streams, and when you factor in that different regions have different rates for their artists, it gets even more complicated.
So, what we would suggest is to get a few paychecks from Spotify and try to average them out. That will give you a better idea of the numbers you can expect moving forward.
Does Spotify Pay Artists Enough?
This is one of the biggest questions in the music industry. And sadly, many artists (big and small) believe that Spotify doesn’t pay artists enough. This is because compared to typical album sales, the royalties from Spotify streams are not sufficient to fund recordings, tours, marketing, and other aspects of being a musician.
On the flip side, Spotify offers artists great exposure. Since anyone in the world can listen to your music when it’s on Spotify, it offers a huge opportunity to garner fans and make a name for yourself. And to make up for the lack of royalties from the stream, artists look for other ways to earn money on top.
To start, many artists earn money from touring and playing different gigs. They also sell merchandise, partner up with brands, and look for alternative income streams. That way, they get the benefit of Spotify’s exposure while still finding a way to sustain themselves.
There are no official data from Spotify on the amount they pay artists per stream. According to most estimates, U.S.-based artists earn around $0.003-$0.005 per stream. However, this rate can vary based on where the artist’s listeners are from.
That said, most artists agree that Spotify needs to increase its royalty rates as it is not sufficient for most artists trying to make a living and have the freedom to produce and record music full-time.
You can read additional Spotify articles here.